Thanks for this. Is the answer to example 8 correct please? I don’t understand where 18.28 come from, I have it as 16.28? with the IRR coming out at 10.02%. The answer in the back of the notes also appears to multiply 6.06 & 10.22 rather than add them? Then the answer is 11.86. Bit confused. Thanks.
dinkvanstink says
Thanks for this. Is the answer to example 8 correct please? I don’t understand where 18.28 come from, I have it as 16.28? with the IRR coming out at 10.02%. The answer in the back of the notes also appears to multiply 6.06 & 10.22 rather than add them? Then the answer is 11.86. Bit confused. Thanks.
John Moffat says
There is an error in the lecture – the total is 16.28 and not 18.28.
The printed answer is correct (the ‘x’ sign should be a ‘+’ sign but the workings are all correct.
John Moffat says
Many congratulations on having passed 馃檪
AnnaSakhro says
Thanks for a clear explanation! Passed FM with your lectures. Happy to know a lot while studying AFM now